DJ Moyles Doubled As Car Dealer To Avoid Tax
DJ Chris Moyles claimed to be a second-hand car dealer to save £1m in tax, a tribunal has found.
Moyles and two other men joined a scheme called Working Wheels, which allowed them to say they incurred large fees working in the car trade.
These fees could then be set against their tax bill.
Working Wheels counted "450 fund managers, celebrities and other high earners between 2006 and 2008" as members.
Moyles took to Twitter to deny knowingly doing anything illegal - but admitted he had been naive.
The former Radio One Breakfast Show host wrote: "I want to comment about a recent tribunal tax ruling.
"Upon advice, I signed up to a scheme which I was assured was legal. Despite this, my knowledge of the dealings of the scheme were naive.
"I'm not a tax expert and acted on advice I was given. This was a mistake and I accept the ruling without reservation.
"I take full responsibility and have learnt a valuable lesson."
A judgement of the Tax Chamber of the First-tier Tribunal revealed how Moyles submitted a self-assessment tax return for 2007-08 which said he "had engaged in self-employment as a used car trader".
Moyles did not give evidence but offered "a brief witness statement".
Judge Colin Bishopp described that evidence as "very brief and rather uninformative".
The judgement said: "It is, however, quite clear from the statement that he too entered the scheme for no purpose other than to achieve a tax saving, and that he took no interest in the trade."
The ruling added that Moyles was "anxious to be reassured that the scheme was lawful, and that he would not have to undertake any trading himself".
The case has been described by Exchequer Secretary David Gauke as a warning to others.
The MP said: "This case is another example of why taxpayers should not fall for the promises of promoters selling schemes that are all too often too good to be true. Not only will the taxpayer waste money on the fees for these failed schemes, they will still have to pay all the tax, interest and penalties that are due.
"This Government has provided HMRC with the resources to tackle these avoidance schemes and HMRC will now pursue the other users of the scheme to make sure all the taxes that are due are paid."
HM Revenue & Customs will be contacting hundreds of other members of the Working Wheels scheme soon.
:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.